Saturday 16 February 2019

Falcon Oil & Gas signs rig contract in preparation for 2019 drilling

(stock picture)
(stock picture)
Ellie Donnelly

Ellie Donnelly

Falcon Oil & Gas has announced that Origin Energy, operator of the Beetaloo licences, has signed a rig contract with Ensign Australia to cover the stage two of its 2019 drilling campaign.

Dublin-headquartered Falcon has a joint venture with Origin Energy in the Northern Territory.

The programme involves the drilling and hydraulic testing of two horizontal wells. These will allow assessment of the liquid rich gas fairway targets in the Kyalla and Velkerri formations.

Together with the Velkerri B dry gas play discovered in 2016, this allows for the assessment of three plays, enabling the most commercially prospective play to be targeted for stage three drilling during 2020, Falcon said.

The Stage 2 Cost Cap is approximately A$65m (€41m) for the exploration and appraisal programme, including the drilling and hydraulic fracture stimulation costs of two horizontal wells.

Work, including water hole drilling and monitoring, has already commenced at some well sites, while drilling is scheduled to start in June this year.

Philip O’Quigley, CEO of Falcon, said: "Today’s announcement is an exciting development for Falcon shareholders as the JV prepares to commence drilling in the highly prospective Beetaloo Sub-basin."

"We look forward to updating the market as work progresses over the coming months."

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